$1,700 Tax Credit to Fund School Choice Starting in 2027

A new federal program will let taxpayers directly support educational freedom starting in 2027. The policy creates a tax credit scholarship system. Under the plan, individuals can donate up to $1,700 to qualified non-profit organizations. These nonprofits then provide scholarships for educational expenses. The credit directly reduces a donor's federal tax bill. This incentivizes contributions that fund "educational choice." This term refers to letting families use scholarships for alternatives to their assigned public school, such as private schools. Experts Bennett and Mohrman project the program could generate over 1,000 new scholarship-granting groups by 2026. They argue this will massively expand options for families. The program becomes active for the 2027 tax year. Lawmakers designed it to increase private funding for K-12 education choices nationwide.